The Analytical Overview of the Main Currency Pairs on 2018.03.21

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.23343

Open: 1.22435

% chg. over the last day: -0.71

Day's range: 1.22417 – 1.22886

52 wk range: 1.0492 – 1.2537

Today the attention of financial market participants is focused on the meeting of the Federal Reserve System. It is expected that the regulator will raise the key interest rate to 1.75%. We believe that this event has already been included in the price. We recommend you to pay attention to the comments of the Central Bank officials regarding the further rate of tightening the monetary policy. At the moment, the technical pattern on EUR/USD is ambiguous. We recommend opening positions from the key support and resistance levels.

The news feed on 2018.03.21:

- Existing home sales in the US at 16:00 (GMT+2:00);

- The decision on the interest rate by the Fed at 20:00 (GMT+2:00).

Indicators do not send accurate signals. The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram has begun to rise and is above the signal line, which signals the purchases of EUR/USD.

Stochastic Oscillator is located in the overbought zone, the %K line is above the %D line, which gives a weak signal to buy EUR/USD.

Trading recommendations

Support levels: 1.22600, 1.22400, 1.22000

Resistance levels: 1.23000, 1.23300, 1.23600

If the Fed goes into the offensive on further rates of the key interest rate increase, demand for the US dollar may grow significantly. We recommend considering sales of EUR/USD. The movement is tending to the round level of 1.22000.

An alternative may be the growth of the EUR/USD currency pair to the level of 1.23600-1.24000.

When tracking positions, one should use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.40243

Open: 1.40002

% chg. over the last day: -0.14

Day's range: 1.39976 – 1.40429

52 wk range: 1.2106 – 1.4345

At the moment, the GBP/USD currency pair is in a sideways trend after significant growth on Monday, March 19. Investors expect publication of important statistics on the UK economy and the Fed's decision on the interest rate. The key support and resistance levels are 1.40200 and 1.40700, respectively. We recommend opening positions from these marks.

At 11:30 (GMT+2:00) the data on the labor market in the UK will appear.

Indicators point to the power of buyers. The price has fixed above 50 MA and 200 MA.

The MACD histogram has begun to rise and moved to the positive zone, which signals the growth of the GBP/USD currency pair.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which signals purchases of GBP/USD.

Trading recommendations

Support levels: 1.40200, 1.39800, 1.39400

Resistance levels: 1.40700, 1.41000

If the report on the UK labor market is optimistic, we expect the growth of GBP/USD in the short term. The movement is tending to 1.40700-1.41000.

An alternative may be reduction of the GBP/USD currency pair to 1.39800-1.39400.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.30822

Open: 1.30782

% chg. over the last day: -0.02

Day's range: 1.30104 – 1.30765

52 wk range: 1.2059 – 1.3795

There is an ambiguous technical pattern on the USD/CAD currency pair. At the moment, quotes are consolidating. The trading instrument is testing local support and resistance levels: 1.30150 and 1.30600, respectively. Participants of the financial markets are waiting for the Fed's decision on the interest rate. The Canadian dollar is supported by a positive dynamics in the "black gold" market. Positions must be opened from the key levels.

The news feed on Canada's economy is calm.

The price has fixed between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

The MACD histogram is located in the negative zone and below the signal line, which indicates the correction of the USD/CAD currency pair.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which sends a signal to buy USD/CAD.

Trading recommendations

Support levels: 1.30150, 1.29700, 1.29250

Resistance levels: 1.30600, 1.31200

If the price fixes above 1.30600, further growth of the USD/CAD currency pair is expected. The target movement level is 1.31200-1.31500.

Alternative option. If the price fixes below the local support of 1.30150, it is necessary to consider selling USD/CAD. The movement is tending to 1.29700-1.29250.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 106.025

Open: 106.529

% chg. over the last day: +0.37

Day's range: 106.241 – 106.549

52 wk range: 107.33 – 115.51

At the moment, the USD/JPY currency pair is in the flat. The technical pattern is ambiguous. Investors took a wait-and-see attitude before the Fed's decision. The trading instrument is testing the local support and resistance levels: 106.250 and 106.550, respectively. We recommend you to open positions above/below these markers.

The news feed on Japan's economy is calm.

Indicators do not send accurate signals. The price has crossed 50 MA and 200 MA.

The MACD histogram is located near the 0 mark.

Stochastic Oscillator is in the oversold zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 106.250, 105.850, 105.600

Resistance levels: 106.550, 106.900, 107.250

If the price fixes below the support level of 106.250, USD/JPY is expected to fall. The movement is tending to 105.850-105.600.

Alternative option. If the price fixes above the resistance level of 106.550, it is necessary to consider buying USD/JPY. The movement is tending to 106.900-107.250.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.